Divorce can throw any family’s finances into turmoil, but for older couples it can be particularly stinging.

That’s because, for older couples, the biggest enemy is time.

“When you divorce in your 50s and 60s, you lose the luxury of time to recover from any financial shortfalls or mistakes,” says Lynn Lawrance, certified financial planner at Financial Network Investment Corp. in Dallas. “Someone who divorces at a younger age could still have 40 or 50 years to deal with any financial issues.”

When Susan Grundy and her husband of 39 years divorced in 2007, they divided their assets, including retirement savings, about 50-50.

“You basically accept that you will have less to live on and less security,” says Grundy, 65, of Dallas.

Grundy worked some during her marriage but not the entire time, and usually not in high-paying jobs.

“I never chose to work at a job that was really financially rewarding,” says Grundy, who ran a consulting business and also was a volunteer program coordinator for the Senior Source. “I always worked at a job that mattered to me.”

Now Grundy is looking to return to work to supplement her retirement savings.

“I’m not desperate for something because since I took my Social Security payments, I’m OK,” she says. “I’m also very realistic. I’m in my mid-60s. I’m not going to be at the top of anybody’s list.”

Given current trends, more baby boomer couples will be faced with the same harsh reality.

The divorce rate among people ages 50 and older doubled in the past two decades, according to a recent report by sociologists at Bowling Green State University.

In fact, about 25 percent of divorces in 2009 occurred among those 50 and older, according to the report, “The Gray Divorce Revolution.”

“Baby Boomers, the first to divorce and remarry in large numbers during young adulthood, are moving into the older adult population, and this portends a growing number of older adults will experience divorce,” according to the report.

For that group, divorce brings with it a unique set of financial challenges.

“Whenever you divorce, you have to make decisions relating to where you’re going to live, property division, taxation, employment, credit, insurance coverage and budgeting,” Lawrance says.

“When you divorce later in life, your children are more likely to be grown so the focus turns toward retirement issues, such as how long should you work, pension and 401(k) plans, health insurance, investment accounts, IRAs and when to start Social Security,” she adds.

Here’s how divorce can impact major areas affecting older couples:

Couples will often split retirement savings, but the amount usually isn’t enough for each partner, says Jean Keener, certified financial planner and certified financial divorce specialist at Keener Financial Planning in Keller.

“Even if the couple was on track for retirement, there are usually not enough assets after they’re divided for each spouse to maintain their expected timing and lifestyle for retirement,” she says.

So some may need to postpone retirement or, like Grundy, return to work. But older workers may find rejoining the workforce is not easy.

“If you’re age 55 or age 60, if you re-enter, it’s likely going to be a low-paying job,” says Melinda Eitzen, family law attorney at Duffee + Eitzen LLP. in Dallas. “If they don’t have much of an estate to speak of, that’s going to be a problem.”

For many older divorced workers, Social Security can provide a steady source of income. The big question will be whether you draw the Social Security benefits you’re entitled to, or half of your former spouse’s benefit.

“If you were married at least 10 years, you will be eligible to make a claim against your former spouse’s Social Security benefit, under certain conditions,” says Joanna Jadlow, certified financial planner at Robertson, Griege & Thoele Financial Advisors in Dallas.

“I would recommend obtaining a copy of your spouse’s most recent Social Security statement during the divorce process so that you can get an idea of what that benefit will be.”

You can receive Social Security benefits based on your former spouse’s employment record if: your marriage lasted 10 years or longer and you’ve been divorced at least two years; you have not remarried; you’re age 62 or older; and you’re not eligible for an equal or higher benefit based on your own work or someone else’s work.

Grundy opted for benefits based on her ex-spouse’s work.

She says she realized “that my best bet was to take half of my ex-spouse’s benefits” because she had not worked steadily throughout her marriage and “also because I chose jobs that were not extremely high income.”

“One of the biggest issues for people getting divorced between ages 55-65 is health insurance,” says Jadlow. “If both spouses are working and have access to health insurance through their employers, this is not a big issue. However, if one spouse is not working or is self-employed, health insurance is a greater concern.”

COBRA insurance is usually available through your ex-spouse’s employer for 36 months after a divorce, she says.

“This can be a helpful option while you transition to your own policy, but it is usually fairly expensive,” Jadlow says. “If you are not going to have health insurance available through your own employer post-divorce, I’d recommend that you move to an individual policy as soon as possible following the date of divorce.”

Grundy says she was able to stay on her husband’s health insurance plan, but she had to pay close to $500 a month for the premium.

“That was a huge item that I had to pay attention to, and I was counting the moments until I turned 65” to become eligible for Medicare, she says.

Of all the marital assets that have to be divvied up during a divorce, a couple’s home often is the most emotionally charged and financially perilous. That’s why it’s imperative not to let your emotions rule your decision-making.

“It’s one of the most common areas where a poor financial decision is made during a divorce,” Keener says.

Frequently, one spouse — commonly the wife — has an emotional attachment to the home and wants to keep it after the divorce. But that means she has to be able make the monthly mortgage payment, as well as pay for maintenance, repairs, taxes and insurance.

“Oftentimes, they’re spending through assets at a faster rate than they really should be … to keep the house,” Keener says.

Typically, the taxes, insurance, utilities, repairs and upkeep of a home add up to about 7 percent of its fair market value, says Thomas Murphy, certified financial planner at Murphy & Sylvest LLC in Dallas.

“Many couples facing divorce will think solely in terms of the monthly mortgage payment, not realizing these other expenses can make the difference between a happy home and bankruptcy,” he says.

So each partner needs to evaluate the standard of living he or she can afford based on individual earnings, Murphy says.

In Grundy’s case, her husband bought out her share of their home, and she bought a smaller house.

“It was one of the assets that were in the whole stack of assets, and it ended up in his stack because he wanted it and I didn’t,” she says.

No matter how much you want to stick your spouse with all the credit card bills, it doesn’t work that way.

Debts obtained jointly in a marriage remain the obligation of both parties after a divorce, no matter what a divorce decree says.

So, even if your former spouse is deemed responsible for a particular debt, you’re not off the hook. If your ex-spouse doesn’t pay the debt, then you have to pay it or it will hurt your credit.

On the other hand, any debts incurred individually during a marriage are the responsibility of that person.

The key consideration in dealing with debt after divorce is how the debt will be paid off, Keener says.

“In some situations, it may make sense to use assets to eliminate the debt if neither individual anticipates having the income necessary to eliminate it on their own,” she says.

“In other cases, the individual with the higher income can take a greater amount of the debt to create a sustainable situation for both parties.”

No matter their age, many couples face financial uncertainty after divorce. For older couples, the new reality can be a shock to the system.

After years of sharing income and assets, they now have to support two households instead of one. They now have two mortgages or rent payments, two utility payments, two grocery bills and other expenses.

It’s a major adjustment.

For many, Jadlow says, “divorcing at a later stage of life brings an unwelcome finality to their financial situation.”

1. Cut your expenses. Most likely, you won’t have a choice because divorce often lowers the standard of living of both partners.

2. Calculate whether you can afford to keep the house. Will you be able to afford the mortgage, maintenance, repairs, utilities and taxes?

3. Be sure you have health insurance. This is an issue if one spouse is not working or is self-employed.

4. Be clear on the handling of current debts. Debts that were obtained in the name of both spouses before a divorce remain the obligations of both parties after a divorce, no matter what a divorce decree says.

5. Protect your credit. If your divorce decree makes your ex-spouse responsible for a debt that was jointly incurred, monitor the account to ensure that payments are made on time. If your ex-spouse is late or defaults on a payment, you’ll be responsible for the debt or it can hurt your credit.

To post a comment, log into your chosen social network and then add your comment below. Your comments are subject to our Terms of Service and the privacy policy and terms of service of your social network. If you do not want to comment with a social network, please consider writing a letter to the editor.